The break-even point in units decreases if the:
A)flexible (variable)cost per unit increases.
B)total capacity-related (fixed)costs decrease.
C)contribution margin per unit decreases.
D)selling price per unit decreases.

Question

Quizplus · Accepted Answer

The break-even point is the number of units a company needs to sell in order to cover all of its costs. Fixed costs are those costs that do not change with the level of production, and therefore, a decrease in total fixed costs will decrease the break-even point.

The Break-Even Point in Units Decreases If The